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Starbucks (NASDAQ:SBUX) disclosed some of the terms of its compensation agreement with incoming CEO Brian Niccol in a filing with the SEC late Wednesday.
During her time with the company, Nicole will receive a base salary of $1.6 million per year and annual The cash incentive opportunity will be paid at 225% of base salary, up to a maximum of 450% of base salary, pro rata in fiscal year 2024.SBUX) By the end of fiscal year 2025, Nicol will be eligible to receive annual stock-based compensation of a target amount of $23 million pursuant to the terms of a shareholder-approved stock plan. If the company achieves its targets during his first year with the company, Nicol’s compensation package could reach $116.8 million.
Nicol will receive a $10 million cash signing bonus in exchange for cash incentive opportunities he is giving up from his current employer and shares he would have invested in Chipotle (CMG).
Nicole will not be required to relocate to Starbucks’ (SBUX) headquarters in Seattle, but has agreed to commute from home to the headquarters as necessary to perform her duties and responsibilities. Starbucks (SBUX) has opened a small remote office in Newport Beach to support Nicole.
Even after the high-profile hiring of Brian Niccol, Starbucks (SBUX) still felt the presence of former three-term CEO Howard Schultz. Notably, Schultz remains the company’s largest individual shareholder and holds the title of honorary lifetime chairman. He is also allowed to attend and observe board meetings, according to the Financial Times. Schultz reportedly met with Niccol before he was hired, but activist investors Elliott Investment Management and Starboard Value were not notified prior to the announcement.
Starbucks (SBUX) falls 2.09% Despite a dip on Wednesday, the stock is still up more than 20% this week.
